Questions on Transitional Dispositions – Phased Departure (2012-05)

1. What determines the provisions of the legislation respecting the PPMP that apply to me?

To enter into a phased departure agreement, it is necessary to obtain, from CARRA, confirmation of your eligibility for retirement at the end of the agreement. It is the date of receipt by CARRA of your request for confirmation of eligibility for retirement that determines the applicable provisions:

• The provisions as they read before the tabling of Bill 58, i.e. before February 22, 2012;
• The transitional provisions provided for in Bill 58, i.e. from February 22 to May 21, 2012;
• The provisions of Bill 58, as they would read should the Bill be adopted as tabled (the provisions in force on January 1, 2013).

To submit your application for confirmation of eligibility, you can use the form (this form is available in French only).

2. What happens if I entered into a phased retirement agreement with my employer before the date of tabling of the bill?

If you entered into an agreement with your employer, the provisions of the legislation respecting the PPMP, as they read before the tabling of the bill, would be maintained until the agreement ends, that is, for a maximum of five years (i.e. the provisions regarding the criteria of eligibility for an immediate pension and the percentage of reduction applicable to the pension, should it be received earlier). In that case, CARRA must have received the application for confirmation of eligibility for retirement at the end of the agreement before the date of tabling of the bill, i.e. no later than February 21, 2012.

3. What happens if I plan to enter into a phased departure agreement with my employer as of the date of tabling of the bill?

If you plan to enter into a phased departure agreement, the provisions of the legislation respecting the PPMP, as they read before the bill was tabled, would be maintained according to the following conditions:

• The phased departure agreement must be entered into within 90 days of the date of tabling of the bill in the National Assembly, i.e. from February 22 to May 21, 2012 inclusively;
• The agreement must begin to apply no later than September 1, 2012;
• Retirement must begin in the two years following the date on which the phased departure agreement begins to apply, but no later than September 1, 2014;
• It is necessary to obtain, from CARRA, confirmation of the member's eligibility for retirement at the end of the phased departure agreement in order to enter into the agreement.

4. What should I do if I want to enter into such an agreement under the transitional provision?

It is important to point out that it is up to your employer to decide whether you may enter into a phased departure agreement (progressive retirement) and to determine with you the terms of the agreement.

Therefore, if you want to enter into a phased departure agreement (progressive retirement), you must first go to see the person in charge of the administration of pension plans for your employer. That person is generally in the human resources department.

Subsequently, you will fill out together the form entitled "Application for confirmation of eligibility for phased departure" (267A PPMP ‒ Transitional measure) so that CARRA can confirm for your employer that you will, in fact, be eligible for a retirement pension at the end of the agreement. The form must be duly completed out and signed by the employee and the employer. CARRA must receive the form during the period from February 22 to May 21, 2012 inclusively.

4.1. In the case where a buy-back is required to reach the eligibility requirements for a pension at the end of the phased departure agreement

If you are currently paying amounts to cover the cost of a buy-back, availing yourself of a phased departure agreement could require modification of the terms of payment determined when the buy-back proposal was accepted, so that you can pay the total cost of the buy-back before the date of your retirement, that is, in the two years following the date on which the agreement begins to apply.

If you have filed a buy-back application and you have not yet received the buy-back proposal, the application will be processed as soon as possible, provided Retraite Québec has all the information required to process it. In addition, you must pay the cost of the buy-back before the date on which you retire, that is, in the two years following the date on which the agreement begins to apply.

If you have not yet filed your buy-back application, you must send one of the following two forms to Retraite Québec, or both depending on your situation, along with the required supporting documents, if any:

• Application for a buy-back of one or more periods of absence (RSP‑727A‑ABS);
• Application for a buy-back of one or more periods of work (RSP‑727A‑WRK).

Furthermore, you must pay the cost of the buy-back before the date on which you retire, that is, in the two years following the date on which the agreement begins to apply.

4.2. In the case where a buy-back of service that is under way is not required to reach the pension eligibility criteria at the end of the phased departure agreement

The fact that you avail yourself of a phased departure agreement and the cost of the buy-back of service is being paid could require modification of the terms of payment determined when the buy-back proposal was accepted, so that you can pay the total cost of the buy-back before the date on which you retire, i.e. in the two years following the date on which the agreement begins to apply.

5. If the phased departure agreement is extended and the person retires after the time provided for in the transitional provision, what pension eligibility criteria would be applied?

In the case of an agreement entered into before February 22, 2012 (the form entitled "Application for Confirmation of Eligibility for Phased Departure Under a Public-Sector Pension Plan" (this form is available in French only), received by CARRA before that date), in certain situations extension of the agreement and postponement of retirement have no effect, since the provisions of the Act respecting the PPMP, as they read before the bill was tabled, would be maintained.

In the case where an agreement is entered into in the 90 days following February 22, 2012 [the form entitled "Application for Confirmation of Eligibility for Phased Departure Under a Public-Sector Pension Plan" (RSP-267A PPMP ‒ Transitional measure), received by CARRA from that date until May 21, 2012 inclusively], if retirement is taken after the period of two years following the date on which the agreement began to apply, regardless of the reasons for postponement, the new pension eligibility criteria proposed in the bill must apply.

6. May I avail myself of a phased departure agreement if I enter into an agreement of one to five years, i.e. the duration provided for by the provisions of the legislation as it read before the tabling of the bill?

Yes, it is always possible to enter into an agreement that would not meet the conditions described in the transitional provision, for example, a duration of more than two years. In those cases, it is the criteria of eligibility for retirement, as they would read after the adoption of the bill that would apply if retirement is taken after December 31, 2012. The only effect of the transitional provision is to specify the cases in which the criteria of eligibility for retirement, as they read before the bill was tabled, could be maintained beyond that date.

7. Does the transitional provision contemplate only phased departure agreements?

No. It also contemplates other agreements referring to measures of transition to retirement. These agreements are also provided for in the working conditions and must be entered into with the employer (authorization).

The agreements require, between the date they come into effect and the date they end, the application of a measure of transition, such as a reduction in work time, or using up a reserve of leave or a departure allowance. Furthermore, they must necessarily culminate in retirement. The sole fact of announcing that retirement will be taken on a given date does not constitute an agreement.

8. How can I find out whether the phased retirement agreement entered into with my employer is valid?

At the time of your application for a retirement pension, CARRA will check whether your retirement stems from a phased departure agreement contemplated by the transitional provision, and will ask for any necessary proof. You must therefore enter into a formal agreement with your employer. CARRA will then examine the criteria of eligibility for retirement that must apply, depending on the case.